Agrément South Africa Date: Thursday, 11 October 2018 Thursday, 04 July 2019 www.agrement.co.za Slide 1 Agrément South Africa PRESENTATION OF 2017/18 ANNUAL REPORT TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON PUBLIC WORKS Date: Thursday, 11 October 2018 Parliament, Cape Town Dr. Jeffrey Mahachi: Acting Chairperson Agrement South Africa Mr. Joe Odhiambo: CEO, Agrément South Africa  Mrs. Inge Vieira: CFO, Agrément South Africa Tel: 012 841 4075 jodhiambo@agrement.co.za Our Mandate: Technical reports and certificates of “fitness for purpose” of successfully assessed and certified results of non-standardised or unconventional products, construction systems, components, materials or devices for which no South African national standard or codes of practice exists. Formulated and updated performance criteria used as guidelines in the technical assessments process. Dissemination of information on appropriate innovative construction technologies and infrastructure to promote acceptance amongst the construction fraternity. Technical assessment and certification of non-standardised innovative and non-standard building and construction products.

Table of Contents 1. Background 1.1 Purpose 1.2 Minister’s foreword Slide 3 1. Background 1.1 Purpose 1.2 Minister’s foreword 1.3 Any other strategic matter of interest to the Minister 1.4 Chairperson’s review 1.5 Background 1.6 Agrément South Africa’s Board oversight role 1.7 Board Governance 1.8 Core Business 1.9 Product Development Cycle 1.10 Benefits of Agrément certification 1.11 “Modus Operandi”: The performance concept 1.12 Typical Scope of Evaluation 2. Programme Performance Information 2.1 Organisation Structure 2.2 Achievements measured against mandate 2.3 Performance outputs 2.4 Technical outputs (Certificates Approved) 3. Financial Management 3.1 Comparison of Actual Audited Annual Financial Performance with previous years 3.2 Audit opinion 3.3 Human Resources: Personnel Cost 4. Recommendation

1. Background

1.1 Purpose The purpose of the presentation is to brief the Portfolio Committee on Public Works about Agrément South Africa’s performance as outlined in the 2017/18 Annual Report.

1.2 Minister’s foreword1 Agrément South Africa achieved the key milestone of transitioning from being part of the Council for Scientific and Industrial Research (CSIR) to become a stand-alone schedule 3A public entity reporting to the office of the Minister of National Department of Public Works as well as the National Parliament in terms of the Public Management Finance Act, (Act No. 29 of 1999). Agrément South Africa was appointed as the competent body or licensor to establish and operate the Government initiated Eco-Labelling Scheme for building materials and products for the public sector of South Africa. This important initiative was tasked to Agrément South Africa due to the nature of their work which fits in closely with the proposed Eco-Label scheme. It is envisaged that the scheme will lead to environmentally friendly eco-labelled construction materials and products, and will be incorporated into relevant South African National Standards and the Public Works Standard Specification for Construction Works. Some of the benefits of this scheme will include improved indoor environmental quality and comfort as well as material resource conservation and efficiency.

1.2 Minister’s foreword2 The National Government will support the scheme by developing guidelines and minimum standards for using environmentally friendly Eco-Labelled products. This will be encouraged by ensuring that government procures construction products which have been successfully evaluated for Eco-Labelling. The 2017/2018 financial year was a transitional year for Agrément South Africa and the future will see National Government provide concerted support on the use of Innovative Building Technologies. Agrément South Africa continued to play a global role for the safe introduction of satisfactory innovation into the country. This was managed by undertaking technical assessments of innovative products imported by the country as well as via the organisation maintaining

1.3 Any other strategic matters of interest to the Minister The Agrément South Africa Act was accented to by the Honourable President of the Republic of South Africa as Act No 11 of 2015; Since its inception, Agrément South Africa has been housed and managed by the Council for Scientific and Industrial Research (CSIR) and became a Schedule 3A public entity in terms of the Public Finance Management Act (Act No. 1 of 1999) and accounts to Parliament through its Executive Authority, the Minister of Public Works from 01 April 2017, after the promulgation of the Agrément South Africa Act, (Act No. 11 of 2015). The official launch of the entity was held on 15 June 2018.

1.4 Chairperson’s review1 From 01 April 2018, Agrément South Africa moved to new premises on the second floor of Building 17B, still within the CSIR Scientia Campus, in Brummeria, Pretoria. The organisation’s vision and mission remained the same as did the mandate and the strategic objectives; Agrément South Africa continued to maintain strong strategic links with the other members of the World Federation of Technical Assessment Organisations (WFTAO) sharing technical information for mutual benefit. The National Department of Public Works continued to provide strategic policy direction to the four public entities reporting to the Minister of Public Works. The extension of tenure of the current Board was to enable the smooth transition of the entity to a juristic persona;

1.4 Chairperson's review2 Agrément South Africa played a key role in the introduction of fit-for-purpose innovative construction technologies for the built environment. The National Department of Human Settlements continue to rely on the technical assessments undertaken by the organisation in the selection process of non-standardised building systems and products. The organisation managed to achieve a high level of planned and approved performance targets for the year despite challenges due to transitional arrangements; During the year under review, the Board established two new sub-committees. These were the Audit and Risk and the Human Resources and Remuneration sub-committees.

1.5 Background Agrément South Africa was established by the then Minister of Public works in 1969; It serves the construction and building industry by providing valuable specialised testing of new and innovative systems; The technical assessment serves the construction and building control officials with an authoritative technical scientific assessment of system performance; This enables them to be able to make expert judgement on the suitability or otherwise of a particular product in their areas of jurisdiction; This strategic assistance provides valuable information and thereby enables modern construction method come to the fore.

1.6 Agrément South Africa’s Board oversight role The National Department of Public Works and the Board of Agrément South Africa continued to play an oversight role over the entity; This is to ensure that the entity’s mandate is fulfilled whilst also providing guidance under applicable circumstances; In this regard, regular meetings and feedback sessions were held with the National Department of Public works; Regular Board meetings were also held; This enabled the entity to deliver on its mandate and fulfil its regulatory reporting requirements.

1.7 Board Governance1 Minister appointed 8 Board members and 2 members resigned during the reporting period; Strategic planning sessions are held annually; The technical committee of the Board has the key responsibility to review evaluation reports and draft certificates and if satisfied approve them for certification; The technical committee relies heavily on external technical experts for their independent technical opinions. This is extremely vital for the credibility and independence of the expert opinion; System for organizational governance. Follows King 4 policies of Board governance. Policy Governance defines and guides appropriate relationships between Government, its board of directors, and its chief executive.

1.7 Board Governance2 A technical expert is an individual who has the expert knowledge, experience, training or skill to provide an expert professional opinion on the fitness for purpose of a product or construction system intended for use in the construction of a building or infrastructure within the built environment; Agrément South Africa selects technical experts who are recognised as industry leaders within their profession; This enables their professional technical expert opinions to be accepted and respected within the construction industry; The Board ensured Agrément South Africa was well governed;

1.7 Board Governance3 Board Attendance Record Board Member Attendance Dr Jeffrey Mahachi (Acting Board Chairperson) 7/7 Mr Denzil Fredericks 3/7 Mr Hans Ittmann 6/7 Mrs Mariana Marneweck 5/7 Mrs Ntebo Ngcobo Ms Adelaide Ranape

1.7 Board Governance4 Remuneration of Board Members Board Member Other allowance Other Re-Imbursement Total Dr Jeffrey Mahachi 34,911 41,612 20,222 96,745 Mr Denzil Fredericks 9,412 13,020 11,765 34,197 Mr Hans Ittmann 20,564 14,118 46,447 Mrs Mariana Marneweck 22,044 19,523 53,332 Mrs Ntebo Ngcobo 9,924 13,990 38,032 Ms Adelaide Ranape 4,706 2,834 12,246

Slide 17 Board Governance5 Board Members

1.8 Core Business Vision: To be a world-class technical assessment agency Objective: South African centre for the assessment and certification of innovative non-standardised construction products, systems, materials, components and processes, which are not fully covered by a South African Bureau of Standard national standard or code of practice. Thursday, 04 July 2019Thursday, 04 July 2019

1.9 Product Development Cycle BUILT ENVIRONMENT PROFESSIONALS Thursday, 04 July 2019Thursday, 04 July 2019

1.10 Benefits of Agrément certification1 Technical conduit to new and improved standardized building materials. Improved performance of infrastructure development due to advancements in products & building systems; Can lead towards improvement of existing products; Can lead to doing more with less. Thursday, 04 July 2019Thursday, 04 July 2019

1.10 Benefits of Agrément certification2 Contribute to accelerated infrastructure development; Reassurance of fitness for purpose; Authoritative assessment of system performance; Can help effectively addressing infrastructure backlogs.

1.11 “Modus Operandi”: The Performance Concept1 Agrément South Africa receives from members of the public, innovative construction systems and products, for which there are no national standards or codes of practice; Agrément South Africa carries out holistic and comprehensive technical assessments to evaluate the suitability of the product or systems as being “fit for purpose” or not; Independent and authoritative based on actual tests carried out; Define performance in use without specifying how the performance will be attained.

1.11 “Modus Operandi”: The Performance Concept2 Develop performance criteria (Criteria for local conditions developed by Experts team); Develop suitable test methods; Measure actual performance; Judgement of acceptability in light of actual performance.

1.12 Typical Scope of Evaluation structural strength & stability water penetration and rising damp thermal & energy performance performance in fire quality management system conformity to National Building Regulations condensation acoustic performance accuracy in building durability

2. Programme Performance Information

2.1 Organisational Structure

2.2 Achievements measured against mandate1 Agrément South Africa serves the consumer interest by providing assurance of fitness-for-purpose of innovative, non-standard construction products as well as on-going quality assurance; Agrément South Africa works with the construction industry in the development of cost-effective, innovative and non-standardised construction technology; Agrément South Africa disseminates correct, objective and relevant information to all concerned in respect of the technical, socio-economic and regulatory aspects of innovative and non-standard construction technologies; Agrément South Africa supports the application of the National Building Regulations;

2.2 Achievements measured against mandate2 Agrément South Africa continues to support policy makers at all levels to minimise the risks associated with the use of innovative technologies. The entity’s staff members are actively involved in the SABS’s standards generation committee and various other technical committees; Agrément South Africa actively maintains international links with peer organisations and continues to support the South African construction industry in its export activities by facilitating the approval of South African innovative construction products to countries abroad; Agrément South Africa continues to facilitate the acceptance of innovative products within the context of the government’s new priorities and policies.

2.3 Performance Outputs Total certificates granted in 2017/2018 – 31 Total active certificates - 215 Total inactive certificates - 60

2.4 Technical Outputs (Certificates Approved)   Actual 2017/18 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Applications received: 38 36 33 28 35 Evaluation offers made: 30 22 32 Evaluation offers accepted: 23 16 24 25 20 Certificates issued 31 39 27 No. of Board meetings 7 4 Special Board meetings were held - resulting in a total of seven Board meetings held in the reporting period.

3. Financial Management

3.1 Comparison of Actual Audited Annual Financial Performance With Previous Years  

3.2 Audit opinion Financial statements were audited and Agrément South Africa received an unqualified audit report; There is no qualification or emphasis of matter to report.

3.3 Human Resources: Personnel Cost Personnel Cost by Salary Band

4. Recommendation

4. Recommendation The Portfolio Committee on Public Works is requested to Note and Endorse the 2017/18 Annual Report of Agrément South Africa

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